IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v140y2012i2p670-680.html
   My bibliography  Save this article

Rule-based vs. optimisation-based order release in workload control: A simulation study of a MTO manufacturer

Author

Listed:
  • Pürgstaller, Peter
  • Missbauer, Hubert

Abstract

The paper presents a simulation study that compares multi-period models for order release optimisation (Input/Output Control with fixed lead times and a clearing function model) with a traditional workload control-based order release mechanism (control of aggregate workload with periodic release). For the optimisation models the study assumes periodic re-planning and thus can also assess the effects of demand predictability. The simulation model is based on a practical case of a manufacturer of optical storage media. The results indicate that optimisation models for order release planning largely outperform traditional workload control-based order release mechanisms even in the case of poor demand forecasts.

Suggested Citation

  • Pürgstaller, Peter & Missbauer, Hubert, 2012. "Rule-based vs. optimisation-based order release in workload control: A simulation study of a MTO manufacturer," International Journal of Production Economics, Elsevier, vol. 140(2), pages 670-680.
    • Handle: RePEc:eee:proeco:v:140:y:2012:i:2:p:670-680
    DOI: 10.1016/j.ijpe.2011.09.012
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527311003987
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2011.09.012?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hubert Missbauer & Reha Uzsoy, 2011. "Optimization Models of Production Planning Problems," International Series in Operations Research & Management Science, in: Karl G. Kempf & Pınar Keskinocak & Reha Uzsoy (ed.), Planning Production and Inventories in the Extended Enterprise, chapter 0, pages 437-507, Springer.
    2. Missbauer, Hubert, 2011. "Order release planning with clearing functions: A queueing-theoretical analysis of the clearing function concept," International Journal of Production Economics, Elsevier, vol. 131(1), pages 399-406, May.
    3. Missbauer, Hubert, 2009. "Models of the transient behaviour of production units to optimize the aggregate material flow," International Journal of Production Economics, Elsevier, vol. 118(2), pages 387-397, April.
    4. Sabuncuoglu, I. & Karapinar, H. Y., 1999. "Analysis of order review/release problems in production systems," International Journal of Production Economics, Elsevier, vol. 62(3), pages 259-279, September.
    5. Stevenson, Mark & Hendry, Linda C., 2006. "Aggregate load-oriented workload control: A review and a re-classification of a key approach," International Journal of Production Economics, Elsevier, vol. 104(2), pages 676-693, December.
    6. Gelders, Ludo F. & Van Wassenhove, Luk N., 1985. "Capacity planning in MRP, JIT and OPT: A critique," Engineering Costs and Production Economics, Elsevier, vol. 9(1-3), pages 201-209, April.
    7. Tatsiopoulos, I. P. & Kingsman, B. G., 1983. "Lead time management," European Journal of Operational Research, Elsevier, vol. 14(4), pages 351-358, December.
    8. Milind Dawande & Srinagesh Gavirneni & Sanjeewa Naranpanawe & Suresh Sethi, 2007. "Forecast Horizons for a Class of Dynamic Lot-Size Problems Under Discrete Future Demand," Operations Research, INFORMS, vol. 55(4), pages 688-702, August.
    9. Oosterman, Bas & Land, Martin & Gaalman, Gerard, 2000. "The influence of shop characteristics on workload control," International Journal of Production Economics, Elsevier, vol. 68(1), pages 107-119, October.
    10. Fredendall, Lawrence D. & Ojha, Divesh & Wayne Patterson, J., 2010. "Concerning the theory of workload control," European Journal of Operational Research, Elsevier, vol. 201(1), pages 99-111, February.
    11. Stadtler, Hartmut, 2000. "Improved rolling schedules for the dynamic single level lot sizing problem," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 14079, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    12. Zapfel, Gunther & Missbauer, Hubert, 1993. "New concepts for production planning and control," European Journal of Operational Research, Elsevier, vol. 67(3), pages 297-320, June.
    13. De Bodt, Marc A. & Van Wassenhove, Luk N. & Gelders, Ludo F., 1982. "Lot sizing and safety stock decisions in an MRP system with demand uncertainty," Engineering Costs and Production Economics, Elsevier, vol. 6(1), pages 67-75, April.
    14. Kim, Bokang & Kim, Sooyoung, 2001. "Extended model for a hybrid production planning approach," International Journal of Production Economics, Elsevier, vol. 73(2), pages 165-173, September.
    15. Zapfel, G. & Missbauer, H., 1993. "Production Planning and Control (PPC) systems including load-oriented order release -- Problems and research perspectives," International Journal of Production Economics, Elsevier, vol. 30(1), pages 107-122, July.
    16. Hartmut Stadtler, 2000. "Improved Rolling Schedules for the Dynamic Single-Level Lot-Sizing Problem," Management Science, INFORMS, vol. 46(2), pages 318-326, February.
    17. Steven T. Hackman & Robert C. Leachman, 1989. "A General Framework for Modeling Production," Management Science, INFORMS, vol. 35(4), pages 478-495, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Haeussler, S. & Stampfer, C. & Missbauer, H., 2020. "Comparison of two optimization based order release models with fixed and variable lead times," International Journal of Production Economics, Elsevier, vol. 227(C).
    2. Ghadimi, Foad & Aouam, Tarik & Haeussler, Stefan & Uzsoy, Reha, 2022. "Integrated and hierarchical systems for coordinating order acceptance and release planning," European Journal of Operational Research, Elsevier, vol. 303(3), pages 1277-1289.
    3. Haeussler, Stefan & Missbauer, Hubert, 2014. "Empirical validation of meta-models of work centres in order release planning," International Journal of Production Economics, Elsevier, vol. 149(C), pages 102-116.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Haeussler, S. & Stampfer, C. & Missbauer, H., 2020. "Comparison of two optimization based order release models with fixed and variable lead times," International Journal of Production Economics, Elsevier, vol. 227(C).
    2. Matthias Thürer & Mark Stevenson, 2016. "Workload control in job shops with re-entrant flows: an assessment by simulation," International Journal of Production Research, Taylor & Francis Journals, vol. 54(17), pages 5136-5150, September.
    3. Missbauer, Hubert, 2011. "Order release planning with clearing functions: A queueing-theoretical analysis of the clearing function concept," International Journal of Production Economics, Elsevier, vol. 131(1), pages 399-406, May.
    4. Ghadimi, Foad & Aouam, Tarik & Haeussler, Stefan & Uzsoy, Reha, 2022. "Integrated and hierarchical systems for coordinating order acceptance and release planning," European Journal of Operational Research, Elsevier, vol. 303(3), pages 1277-1289.
    5. Onay, Anita & Stampfer, Christina & Missbauer, Hubert, 2023. "A behavioral perspective on workload control concepts: The influence of order release on operators’ reaction behavior," International Journal of Production Economics, Elsevier, vol. 264(C).
    6. Matthias Thürer & Mark Stevenson & Ting Qu, 2016. "Job sequencing and selection within workload control order release: an assessment by simulation," International Journal of Production Research, Taylor & Francis Journals, vol. 54(4), pages 1061-1075, February.
    7. Stevenson, Mark & Hendry, Linda C., 2006. "Aggregate load-oriented workload control: A review and a re-classification of a key approach," International Journal of Production Economics, Elsevier, vol. 104(2), pages 676-693, December.
    8. Julia Pahl & Stefan Voß & David Woodruff, 2007. "Production planning with load dependent lead times: an update of research," Annals of Operations Research, Springer, vol. 153(1), pages 297-345, September.
    9. Stefan Haeussler & Philipp Neuner & Matthias Thürer, 2023. "Balancing earliness and tardiness within workload control order release: an assessment by simulation," Flexible Services and Manufacturing Journal, Springer, vol. 35(2), pages 487-508, June.
    10. Thürer, Matthias & Stevenson, Mark & Land, Martin J., 2016. "On the integration of input and output control: Workload Control order release," International Journal of Production Economics, Elsevier, vol. 174(C), pages 43-53.
    11. Hendry, L. & Land, M. & Stevenson, M. & Gaalman, G., 2008. "Investigating implementation issues for workload control (WLC): A comparative case study analysis," International Journal of Production Economics, Elsevier, vol. 112(1), pages 452-469, March.
    12. Missbauer, Hubert, 2009. "Models of the transient behaviour of production units to optimize the aggregate material flow," International Journal of Production Economics, Elsevier, vol. 118(2), pages 387-397, April.
    13. Thürer, Matthias & Land, Martin J. & Stevenson, Mark, 2014. "Card-based workload control for job shops: Improving COBACABANA," International Journal of Production Economics, Elsevier, vol. 147(PA), pages 180-188.
    14. Federica Costa & Alberto Portioli-Staudacher, 2021. "Labor flexibility integration in workload control in Industry 4.0 era," Operations Management Research, Springer, vol. 14(3), pages 420-433, December.
    15. Hum, Sin-Hoon & Parlar, Mahmut & Zhou, Yun, 2018. "Measurement and optimization of responsiveness in supply chain networks with queueing structures," European Journal of Operational Research, Elsevier, vol. 264(1), pages 106-118.
    16. Guhlich, Hendrik & Fleischmann, Moritz & Mönch, Lars & Stolletz, Raik, 2018. "A clearing function based bid-price approach to integrated order acceptance and release decisions," European Journal of Operational Research, Elsevier, vol. 268(1), pages 243-254.
    17. Thürer, Matthias & Stevenson, Mark & Qu, Ting & Godinho Filho, Moacir, 2014. "The design of simple subcontracting rules for make-to-order shops: An assessment by simulation," European Journal of Operational Research, Elsevier, vol. 239(3), pages 854-864.
    18. repec:dau:papers:123456789/2078 is not listed on IDEAS
    19. Fernandes, Nuno O. & Carmo-Silva, S., 2011. "Workload control under continuous order release," International Journal of Production Economics, Elsevier, vol. 131(1), pages 257-262, May.
    20. Sagawa, Juliana Keiko & Oliveira, Allan Freitas & Mušič, Gašper & Land, Martin J. & Maluf, Arthur Sarro, 2023. "Smart workload input-output control of production systems: A proof of concept," European Journal of Operational Research, Elsevier, vol. 309(1), pages 286-305.
    21. Jianjun Liu & Martin J. Land & Jos A. C. Bokhorst & Qingxin Chen, 2023. "Improving coordination in assembly job shops: redesigning order release and dispatching," Flexible Services and Manufacturing Journal, Springer, vol. 35(3), pages 669-697, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:140:y:2012:i:2:p:670-680. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.